Why Is Inventory Flow Important to D2C Businesses?

Obviously, the movement of inventory is crucial for any D2C business. Without it, there would be no business at all. However, how the inventory flows is also crucial to the business’s success.

There are lots of factors involved in the inventory flow, including the inventory management process, tracking, forecasting, and restocking. All of these factors must be analyzed to make sure the movement of products is streamlined and every step of the process is accounted for.

If your business is new, and you are looking for the best way to set up your inventory management system, or if you are looking into ways to improve the inventory flow of your existing business, a third-party logistics (3PL) provider is the solution you are looking for. 3PLs such as Smart Parcel 24/7 (SP247) can help you better manage and streamline your inventory flow.

But why is inventory flow so important? Here are some reasons why it is crucial for you to have a good grasp on what inventory is and some ways to improve it in your D2C business.

What Is It?

The way inventory moves through a business’s supply chain is referred to as its inventory flow. The procedures surrounding how the products are transferred between stages in the supply chain are part of the “inventory flow.”

A streamlined inventory flow means a quicker, more efficient movement of a product from its arrival at a warehouse to its shipment.

Benefits of Streamlined Inventory Flow

It is important to ensure your warehouse efficiency is finely tuned. The better a warehouse’s systems are, the smoother the inventory flow will be.

Conveyer belts, labeling machines, shrink wrappers, etc. should all be coordinated. If one mechanism causes a “pile-up,” it can cause product movement to be slowed.

Warehouse control systems should therefore be in place to ensure all of the subsystems are working together in an efficient manner.

Another benefit of a smooth inventory flow is that employees can focus on “human responsibilities.” The sorting, packaging, labeling, etc. that the machines are able to take care of on their own allow businesses to make the most of employee manpower. This also helps to reduce a business’s labor costs.

How to Improve Your Business’s Inventory Flow

If your business has a consistent and streamlined inventory flow, inventory will be much easier to track. The more efficiently stock can be tracked, the more accurately you can forecast demand.

In order to effectively track your inventory, however, you also need software that allows you to do so. SP24/7 offers inventory tracking options that are designed to help your e-commerce business stay on top of your inventory lifecycle. With our transparent tracking system, you can see at exactly what stage your orders are in the fulfillment process.

A streamlined inventory flow and efficient inventory tracking become a helpful cycle as they both improve the other. Easily trackable flow will allow you to refine the flow itself.

The right software can also allow you to automate your orders. A system that automatically processes orders, so they can immediately begin the fulfillment process is a key to optimized inventory flow and warehouse efficiency.

Do all of this and more with Smart Parcel 24/7’s warehouse, fulfillment, and shipping services. Our top-notch software and personalized customer service options will help you make your inventory flow as smooth and streamlined as possible.